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Ritz-Carlton Expands Its Presence in China

Isaac Mostovicz writes that that brands are continuing to expand their presences in China ...

The luxury market in China has been steadily rising, as Chinese consumers look set to create a rise in luxury goods sales of 25 percent this year.

According to a Bain & Co. study from earlier this year, as second and third tier Chinese cities become ‘destinations’ for Luxury brands, China will become the third-largest luxury market in the next five years.

As reported by the Wall Street Journal,

“Bain predicts the worldwide growth trend will continue for the next few years, with sales rising between 5% and 6% each year to between 214 billion and 221 billion euros by 2014.”

This prediction is leant weight by the news of brands such as luxury hoteliers Ritz-Carlton Hotel Co. expanding their presence in China. A recent article by Luxury Daily on the Ritz’s expansion notes that this is taking place as part of a $2 billion expansion. Ritz-Carlton already has eight hotels in China, and has made the decision to expand based on there being a growing affluent population that is beginning to reward itself with luxury goods, services and travel.

A Ritz-Carlton spokesperson said:

“Given the focus on China right now, there is no small secret that China is an emerging country when it comes to lots of different things… there is a huge amount of the population that is now on the move and starting to travel. There is also an equally large population following purchasing behaviours into a luxury market.”

As each Chinese city is very different, none of the Ritz-Carlton hotels in the country are the same, but rather are “culturally relevant”, with the locale reflected in menus and services.

Alongside the news of Ritz-Carlton’s expansion, it was announced today that US luxury bag maker Coach will be listing shares in Hong  Kong as it seeks to raise its profile among Asian consumers. This follows successful flotations by luxury fashion house Prada, and luggage provider Samsonite.

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Coach pays the price for lack of traceability

Isaac Mostovicz writes...

coah_handbag

Coach, the luxury leather producer is suing Target, the discount store for selling rip-off copies of its handbags.

Whether or not the case is proven, it demonstates the difficulty of maintaining integrity of supply for retailers.

Retailers cannot be expected to see down to the bottom of every supply-chain – expecially those of branded goods. The onus is on manufacturers to develop systems which enable them to maintain their own brand integrity. Labelling and branding are not enough. Rich, interrogatable information transfer is required…

Traceability is a core part of the solution. For the diamond industry, Kimberley is a great start of a critical process of consumer accountability.

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